Ladies and gentlemen, good day, and welcome to MTAR Technologies Lim ited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentatio n concludes. Should you need assistance during the conference call, please signal an ope rator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Vidhi Vasa. Thank you, and over to you, ma'am.

Thank you, Atharva. Good morning, everyone. On behalf o f MTAR Technologies, I extend a very warm welcome to all the participants for Q1 FY27 earnings discussion call. Today on our call, we have Mr. Srinivas Reddy, Managing Director and Promoter, Mr. Gunneswara Rao, Chief Financial Officer, and Miss Srilekha Jasthi, Head Strategy and IR. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on the exchange and on the company's website. I would like to give a short disclaimer before we begin the call. This c all may contain some of the forward-looking statements which are completely based upon our belief, opinion, and expectations as of today. These statements are not a guarantee of our fut ure performance and involve unforeseen risks and uncertainties. Now, I hand over the call to Srinivas sir. Over to you, sir.

Hello, good and good morning, everyone. Thank you for tak ing the time to join us today. Today on the call, I'm joined by Mr. Gunneswara Rao, Chief Financial Officer, Miss Sri lekha Jasthi, Head Strategy & Investor Relations, and Orient Capital, our Investor Relation Partners. We have uploaded our updated investor deck, press release, and results highlights on the stock exchanges and company website. I hope everybody had an opportunity to go through the same. I'm pleased to share that we have delivered another strong quarter, with our quarterly performance remaining in line with our growth guidance provided for the current fiscal year. We continue to see strong momentum across all our business verticals, sup ported by favorable industry tailwinds and a healthy pipeline of opportunities. During the quarter, we registered revenue of INR360.7 crores, with an EBITDA margin of 23.6%, which is in line with our annual guidance. While the financial p erformance is very encouraging, what gives me greater confidence is not just the numbers, but the direction in which the company is heading right now. We strongly believe that the company is at an inflection point, with e ach of our key business verticals positioned for next phase of growth. The sectors in which we operate, be it civil nuclear power, aerospace and defense, and clean energy, all are witnes sing strong growth across both domestic and international markets. With long-term strategic vision and a strong spirit of innovation, we hav e built differentiated capabilities and niche product portfolio across these strategic sectors, consiste ntly investing in technologies and capabilities well ahead of broader market adoption.

Today, as these sectors gain significant momentum, the strength and diversity of our key product portfolio are redefining our growth trajectory and creating multiple avenues for sustained long- term growth. In civil nuclear power, the capabilities we have built over the past five decades with a lot of foresight are translating into meaningful opportunities moving forward. We re ceived our highest-ever order inflows in this segment during the last quarter for Kaiga 5 & 6 reactors, and looking forward for more orders from refurbishment of existing reactors during the current quarter as well. I'm also pleased to highlight our notable contribution to the fast breeder rea ctor, which recently achieved criticality, a strategically significant milestone for India's nuclear energy program. The company has played a pivotal role in this prestigious national program, having supplied a majority of the critical assemblies for the reactor, reflecting the depth o f our engineering and manufacturing capabilities built over decades. Looking ahead, the proposed development of four nuclear reactors at Mahi Banswara through the NTPC-NPCIL partnership represents another significant opportunity for the company. With the Government of India targeting 100 gigawatts of nuclear power capacity by 2047, we believe the long-term opportunity for the company in this sector is substantial. From an execution perspective of current orders, we expect to see a very meaningful ramp-up during the current fiscal year, with a significant growth happening moving forward as well. We already have a strong order book in this segment and supported by healthy pipeline of opportunities and regular order inflows expecting going forward as well. We believe civil nuclear vertical has transitioned to a more consistent and sustainable g rowth trajectory with substantially reduced cyclicality compared to the past. Clean Energy continues to demonstrate a strong momentum. We received re cord order inflows during the quarter, further strengthening our already robust order book and providing strong visibility for growth going forward. Our capacity augmentation plan for fuel cells being implemented in three phases remains on track, with Phase 1 already commissioned, Phase 2 to be commissioned by September-October of this year, while Phase 3, which is a multifold capacity expansion, will be completed in March of 2027. [inaudible 06 02] being developed for fuel cells is designed to supp ort multiple products under one roof, providing us with greater scale and operational efficiency. An important point to highlight here is that our expansion is not limited to adding physical capacity. We have initiated manpower training and are working on automation initiatives well ahead of capacity coming on stream, ensuring that we are operationally prepared to support the expected ramp-up in volumes moving forward in the coming years. While we continue to cater to multiple areas within Clean Energy, we're also focused on further diversity that can become meaningful growth drivers over the long term. In line with this

strategy, we have entered the data center infrastructure solutions segment, where we see significant growth potential. Initial set of data center infrastructure products are currently in progress. Upon successful completion of the qualification process, we expect a meaningful ramp-up over the next year. We are currently working on the first batch of products against a potential re quirement of 8 times this requirement for the order what we have received at this stage, providing opportunity for the substantial scale-up of this vertical. To support this opportunity, we are also setting up a dedicated facility for data center infrastructure solutions. We are witnessing a good traction in hydropower and wind energy segme nts as well, and we continue to pursue select products in this segment. Clean Energy will rema in a major driver of revenues by end of this fiscal year. In aerospace and defense, the growth remains encouraging, and we expect significant order inflows as multiple programs and customer engagements are in progress. In the domestic defense segment, we are anticipating volume orders for actuator assemblies for LCA Tejas Mark-1A, as well as orders for wing kits and electromechanical actuators for various defense programs. With overall opportunity potential exceedingly more than INR250 crores, the execution from domestic space vertical is expected to witness a steady growth. Our MNC aerospace business continues to demonstrate phenomenal growth potential, with significant demand from existing customers for products that have already b een qualified. To support the anticipated volume ramp-ups, setting up multiple sub-units within our existing dedicated aerospace facility. One of our key differentiators has been the pace at which we have established customer-specific manufacturing capabilities, including our new dedicated aerospace fa cility and NADCAP- approved special processes facility. Our ability to establish these capabilities within a short time frame has been appreciated very positively by our customers and reinforces their confidence in our ability to support their growing requirements. With qualified products moving towards higher volumes, increasing deman d from existing customers, and multi-year visibility across key programs, we believe ae rospace and defense is well-positioned to emerge as a significant growth driver for the company. While we continue to pursue multiple new inquiries to capture the nex t leg of growth, our immediate focus remains on completing the first article qualification of existing products and ramping up volumes. As these programs progress, we will also look to onboard new customers. We expect to double our revenues in aerospace and defense segment during the current fiscal year, with a significant ramp-up from this base and spread over the next 3 to 4 years. Importantly, this growth outlook is largely driven by our existing progra ms and product portfolio, with further upside potential as new inquiries currently unde r discussion materialize and additional products are added to our portfolio.

The Oil & Gas facility will be operational by this October. We have alrea dy delivered the first articles to our customers, while the first articles components for another customer are currently under progress. As discussed in the last earnings call, we expect a robust closing order book of INR5,000 crores by end of this fiscal year, providing a strong revenue visibility. O ur closing order book by end of this quarter already stands at INR5,143 crores, and we have received additional INR800 crores of orders today. With further order inflows expected across all key se ctors over the coming quarters, we remain confident in sustaining the growth momentum going forward. While we have a robust 5-year roadmap to pursue growth across al l sectors, execution remains our key focus in the near term. Our ongoing expansions across all verticals remain a top priority as we continue to build the capacity required to support the next phase of growth. At the same time, as we pursue the long-term strategic opportunities ahea d of us, prioritization of projects and prudent allocation of capital will remain equally important for us. We'll continue to focus on maintaining healthy working capital, strengthening o perating cash flows, and maintaining a healthy balance sheet while ensuring that capital is deployed towards opportunities that can deliver sustainable growth and improve our revenues . Timely execution as per customer requirement is another important area of focus. We continue to strengthen our management and technical teams, enhance operation al efficiencies, and build the manufacturing capabilities required to deliver on our growing ord er book and meet our execution targets. Improving EBITDA margins also remains a key priority as we sc ale our revenues. With the progress we are seeing across all key verticals and the init iatives underway to strengthen our capacity and execution, I would like to reiterate ou r confidence in achieving the guidance given earlier at 80% revenue growth for the current fiscal year with an EBITDA margin of 24% plus-minus 100 basis points, and we are pretty confident to do better than the guidance given earlier to everyone. We remain focused on building a world-class institution with a diversified an d sustainable business for the long term. I would like to thank all our shareholders for their continued trust and confidence in the company. Now, our CFO, Mr. Gunneswara Rao, will discuss in detail on the financial performance for Q1 FY27. Thank you.

Thank you, sir, and good morning, everyone, and thank yo u for joining us on the earnings call. We have recorded highest-ever revenue of INR360 crores in Q1 FY27, registering a strong growth compared to the corresponding period last year and also last qua rter. Overall, the company witnessed healthy growth on both YoY and QoQ basis, driven by the strong execution of various products.

I would now like to provide an update on our consolidated financial performance for this quarter compared to the previous year first quarter. So, revenue from the operation is at INR360.7 crores in Q1 FY27 as against INR156.6 crores in Q1 FY26, which resulted 130.4% increase in revenue. EBITDA reported at INR85.1 crores in Q1 FY27 as compared to INR28.4 crores in Q1 FY26, and this has translated to 199.7% increase compared to the last year first quarter. Profit before tax stands at INR67.4 crores in Q1 FY27 as against INR14.8 crores in Q1 FY26, which is 355% increase. Profit after tax was at INR50.2 crores in Q1 FY27 a s against INR10.8 crores in Q1 FY26, which is 364.5% increase compared to the last year first quarter. So, while we expect strong growth across all sectors in which the company operates, the company also focusing on the customer diversification strategy, increasing wallet share from the existing customers, as informed by our MD. Along with this growth, the company will continue to focus maintain healthy cash flows from operations, making careful capital investment decisions, managing workin g capital efficiently to support sustainable long-term growth. When it comes to the working capital days, we have achieved 59 days compared to the 172 days during the FY26 entire year, supported by various initiatives undertake n by the company, including better commercial terms with the customers, and also monitoring each element of the working capital on daily, weekly basis. So, we were able to reach to 59 days, whereas our guidance given in this year is 175 days we have given a guidance, whereas we achieved 59 days. By end of the year, we were expecting to maintain 100 days as compared to the previous guidance of 150 to 175 days in that range. Gross margins we achieved as 45.61% in this quarter, as compared to the last year 47.65%. This is due to revenue mix, which is happened in this year, and we are continuously monitoring the improvement of the gross margins wherever possible. Then EBITDA margins are at INR85.1 crores in this quarter, which is actuall y 23.54% we achieved as against yearly guidance of 24% we have given, and la st quarter EBITDA margins was at 20.11%, and this is due to operating leverage we achieved th rough the higher revenues and also monitoring of the costs. ROCE at 17.2% versus 11.4%, and we expected to reach 23% next year. Our PAT is at INR50.22 crores for this quarter, which is 13.92% as against 6.9% in Q1 FY26 , and last quarter also we achieved good set of the PAT numbers because our revenues are growin g multifold from now onwards because of the strong order book what we have, and also whatever sectors we were doing first articles last 2-3 years, it is now in the production ramp-up stage, and customers were increasing the orders in this sector, first articles whatever we completed, we are g etting at least 10 to 15 times of the volumes in the aerospace sector.

And cash flow from operations is at INR247.69 crores in this quarter as aga inst INR191.66 crores in the last year. This is mainly due to the various initiatives unde rtaken by the company, including working capital and other areas, better commercial terms with customer. And other important metric, we are seeing our debt is at INR423.6 crores as of 30th June 2026. So, we have an investment of INR379 crores as of this month, and like July end, we have INR379 crores of the investments are there. So, literally, there is no deb t in the company except some INR20 crores -30 crores after adjusting the cash balances whatever we have. And as explained by our MD, we are in a phase of the expansion of the various verticals in the company, and this requires almost INR500 crores of capex for this year a nd also next year put together, this capex required for the existing expansion plans whatever we have undertaken. thank you, everyone, for joining this call, and we appreciate yo ur time and for your trust and confidence reposed on the company. Thank you very much. Yo u can take up the question and answers now.

Thank you very much. We will now begin the question-and-answer se ssion. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.

Yes. Good morning, sir, and congratulations on a very good quarte r. My first question is, sir, can you help us with the tentative execution timelines for the order which were announced today, which is 31 billion? Is it everything of this will get executed in FY28 and FY29 and nothing would be executed in FY27? Is that a fair expectation?

Yes, I mean, the orders what we received today, the execution timeline is for next year. I mean, the demand is lot more, and it all depends on how soon we can implement our expansion plan and then take it forward. So, the sooner we do, and the requirement is obviously for next financial year, but we have to see how soon we can implement our expansion plan and ramp-up plan for next year, which we are targeting that, and let's see how it goes.

Understood, sir. My second question is, sir, do you expect separate pac kage for nuclear power plant of Mahi Banswara for fuel machining system where we can participate directly or are you expecting to participate through the EPC vendors?

No, that is through EPC vendors. So, we are qualified for number of projects as you have seen in Kaiga 5 & 6. So, we expect a good opportunity from this. Kaiga 5 & 6 is two reactors, and these are four reactors. And MTAR's participation in this project will be much higher than what we can expect from Kaiga 5 & 6 as well.

Oh, understood, sir. That's helpful. My last question, sir, can you help with the execution timelines for the existing nuclear order for Kaiga 5 & 6 and how big is the refurbishment order which you're expecting in this quarter?

See, the refurbishment orders overall would be about around 200-pl us crores that we need to do for various reactors. We're expecting another INR130 crores-INR140 crores o f orders coming in in this quarter. And then, obviously, we have a lot on our plate in term s of the maximum

orders, which will be around close to INR800 crores in nuclear division itse lf, which never happened in the history of this company in the past. And plus, the kind of order pipeline that we can see moving forward as well with the new projects coming in and the government's plan to move into much highe r gigawatt range, we expect this momentum to continue over the years, and there will not be any c yclical issues as compared in the past, earlier I'm talking about 5-10 years back, but we would se e the momentum going forward as well.

And the execution timelines for the existing order, sir?

So, for the refurbishment reactors, it is within 2 years. And for Kaiga 5 & 6, the execution timelines range from 1 year to 3 years, 3, 3 and a half years.

Understood, sir. Thank you and all the best, sir. Thank you.

We take the next question from the line of Balasubramanian from Arihant Ca pital. Please go ahead.

Good morning, sir. Thank you so much for the opportunity. Congratulations for good set of numbers. Sir, on the working capital side, we have seen a significan t improvement in terms of inventory days also reduced from 208 to 145. Receivables also redu ced 140 to 82. Just want to understand, this dramatic reduction in days is very much impressive. So, like how do you understand in this financial year as well as next year? And given it's a diverse project portfolio, some of them are long-cycle, some of the m are short-cycle. So, what are the specific initiatives drive this improvement, and how do you unde rstand in the coming years?

Yes, I'll take up this question. So, we have negotiated better terms with some of our customers as far as commercial terms is consideration. And also, our receivable days are good compared to the last quarter. We were able to negotiate some better terms. One is a commercial term, also the credit period we negotiated. Some of the credit terms are after reach ing the customer premises. So, we were able to deliver at a faster pace so that we can able to receive the money. And having said that, our target is for this year is around 100 days we are targeting to reach that, including keeping consideration of all long-cycle projects into consideration. Apart from this, we also are monitoring every element of the working capital like current assets, we are targeting to generate GST refund of almost INR70 crores per year . So, so that cash flows will be better, cash flow from operations better and all. We wanted to sustain these levels constantly negotiating better terms with the both existing customers and also from the new customer. So, that's how we can able to do. Everything is done it organically, and there is a possibility of doing inorganically also , but we don't want to do at the cost of margins. So, the inorganically also we can reduce, but it will be the costlier.

We don't want to affect the margins in the company. As long as it is margins are better and everything is good, then only we can take any of the actions, b ut whatever we have done is organically we are able to reduce now. I hope I clarified your question.

Yes, sir. Sir, my last question, sir, I think we have an order book of nea rly INR5,100-plus crores, and today morning around INR3,100 crores. So, I think if you' re having if you want to execute more order book, obviously, we need to have kind of facilities and equipment. Earlier, you guided a capex. Is there any reiteration in that capex, e specially for Clean Energy side? And if you could like give the update of oil and gas and Cle an Energy Phase 2 for the capex perspective, and how much capex we have incurred in Q1, sir?

See, total INR80 crores capex is capitalized, but it is not spent in th is quarter. It is actually in the form of capital work-in-progress, and it became capitalized now. For quarter 1, we might h ave spent around INR30 crores -INR35 crores only capex, but overall INR80 c rores which is capitalized. But earlier, it was in Capital WIP line item. It's a part of fixed assets only. When it comes to INR5,000 crores order book, what you mentioned, today we have given an incremental, we received that INR3,200 crores. It is not a full order, alrea dy communicated earlier, the incremental order is INR800 crores. So, it is 5,100 plus INR800-plus crores is a total order book as of today. When it comes to the capex plans, as we said earlier in our call, is actually around INR500 crores we have to incur to take the company into the next level. Next yea r guidance we are not giving officially as of today, but we are seeing at least 4-5 times of asset turn over whatever we do, minimum 4 to 5 times of asset turnover we are targeting. And if you look at our debt is today around INR20 crores -INR25 crores only, after adjusting the investments what we have in the company. So, we are very stro ng as far as a balance sheet is concerned and working capital also into consideration, total ac ross all sectors, we are going to spend around INR500 crores, but everything will not spend in this year. It will be spill over to next 1 to 2 quarters of the next financial year. As communicated by our MD, there are Phase 1, Phase 2, Phase 3 targets are there, for which we need to spend money to increase the asset turnover ratio at least 6 times whatever we spend in the form of capex.

Got it, sir. Thank you.

Thank you. The next question comes from the line of Gaurav Nagori from Avendus Spark. Please go ahead.

Thanks for the opportunity. Continuing the last participant's question , given that you are seeing a very strong demand for the in the fuel cell segment, are you p lanning the capacity expansion beyond the 20,000 hot boxes capacity that's already guided? That's question number one. And secondly, if you can elaborate a little bit more on this new product revenue which has gone to almost INR100 crores, almost 50% of the Clean Energy segment revenue run rate?

Yeah. So, basically, Gaurav, as I mentioned earlier, we are go ing to Phase 2 is an expansion [inaudible 29 28] should be ready by September-October for fuel cells, a nd Phase 3 is going to be a mutifold expansion plan. I can't specify the numbers because of the NDA being signed, but it's going to be a multifold expansion plan, which will be ready b y March of 2027, in all probability. So, there will be a ramp-up, which is being organized, training program is being done right away to gear up to these. One is the capacity and one is the ramp-up plan, so both are being addressed. So, it's going to be a massive multifold expansion plan, which is in place because of a very strong demand as you have seen that even today order inflows on a c onsistent basis. And moving forward as well, we see a very strong roadmap in all these sectors mov ing forward. And what was the second question, Gaurav?

Yeah, so on this first question only, so when you say March '27 tim eline, is it the commissioning by March '27 or you would be starting from March '27, if you can just clarify on that one, sir?

It's going to be commissioning by March '27, the multifold ex pansion plan, and then we move on to the ramp-up plan afterwards from April onwards.

Understood.

But we'll have Phase 2 will be operational by October of this year. Be cause we've already completed our Phase 1 expansion plan in all aspects. It's done already.

All right. So, the capex for this year would be upgraded because of this new phase expansion from October to March '27?

Yes, that's right.

All right. The second question was on the new product, which has seen a sharp growth in this quarter. In fact, the run rate now is almost 50% of your the fuel cell segme nt revenue run rate. So, is it just one-off deliveries or this would be the run rate continuing from here on, sir?

No, it's going to continue. It's going to continue to grow. Ac tually, we are going into a We've got a major demand in this product division, and it's going to conti nue to grow more than what it has grown in Q1. Second half would be even stronger than the first half in all these segments that we are talking about, including the product division.

And this new product segment, I'm assuming, is the product which g oes into this fuel cell assembly only, other than the hot box?

No, not necessarily. We have the other products as well. We are d oing extremely well in ball screws where we have lot of export orders as well, and we are seeing a major contract with one of the MNCs to supply ball screws for them for the aerospace division. So, lot of work has been done over the past couple of years to get qualified for all this, and now you're seeing those results moving forward. It's a combination of everything.

Understood. Just last question again on the working capital where we' ve seen receivables kind of coming down from 140 to 80. Our understanding is that most of this high receivable days is because of the transit time that you have, and then the recove ry from the client is having about 40-45 days of working capital days. So, if I understood it correctly, this entire decline is because of a better credit terms once the product is delivered at the client site or any other reason?

No, it's all about better payment terms, credit terms, and various o ther aspects, right? So, that's what it is. Yeah, Gunneswara want to add something.

we also actually got negotiated better terms with other customers also, and weekly monitoring is in place and so various actions, not only that. Everything culminated into this reduction.

Understood.

So, the end of the day, Gaurav, the idea is to bring down worki ng capital days would be like -- we'll be sustaining it, we are at 59-60 days right now, but we'll be b elow 100 days for the year, so that's what the CFO has mentioned earlier.

Okay. I mean, the way to look at is the receivables inventory day s which used to be about 340 days, which is now down to about 220, so you're saying that both th e receivable plus inventory days would sustain around 200-220 days, and the working capital at 100 days?

Yeah, that's what our target is, let us see.

All right. Thank you. That's it from my side.

Thank you. The next question comes from the line of Sumant Kumar from Motilal Oswal Financial Services. Please go ahead.

Yeah, hi. My question is, our key client has increased their reven ue guidance by 10% to 15%. So, assuming that, can we say whatever the guidance we have give n 80% plus-minus 5% there is a higher possibility to upgrade this in the coming quarter?

Sumant, it's like this. I've already said that in my earnings call speech that definitely we have given a certain guidance, which we are very confident of, and we'll definitely do better than that. So, probably that's what I would say right now. Probably we'll see by end of next quarter how it goes and then we'll come back to you on that.

Okay. And for this civil nuclear power segment, our order book e xecution is still is not picking. So, when can we expect this execution is going to happen, which year?

In this year, Sumant. Second half of this year, the execution will c ommence, and it will continue to grow from there on. That's why I clearly said that we are doing certain long-cycle projects right now, and the executions will start from second half of this year, and it will continue to grow from there on.

Overall, it's for 3, 3 and a half years. Some of the orders are within 2 y ears. Overall, we have to execute everything, we have roughly around INR800 crores, let's say, in cluding the one which we are supposed to get where we are declared L1. We are supposed to execute all this within the next 3 years.

Okay, okay. Thank you so much. Thank you.

So, as of today, we have INR684 crores of orders, and what we are expecting is INR130 crores, so with that, it is around INR815 crores, that was mentioned by our MD around INR800 crores in the last question also. So, that is we are going to, I think we are very confident we'll get in this quarter.

Okay. Okay, thank you so much.

Thank you. We have the next question from the line of Vipraw Sriv astava from PhillipCapital. Please go ahead.

Hi, sir. Good morning. Just quickly on the capex side. So, you have guided for INR500 crores of capex for next couple of years. Out of this, sir, how much will be for non-clean energy segments out of this INR500 crores?

So, it will be I think I answered that, right? 70-30 ratio, but it will b e in the 70-30%.

So, 30% is for non-clean energy segments, right?

Yes, yes.

Okay, so around INR150 crores.

Even within the clean energy also, some parts can be fungible in o ther sectors also, so which we will use for other sectors also.

Right, sir. And, sir, out of this INR500 crores, how much you have alread y incurred in Q1?

We incurred around INR35 crores of capex in the Q1.

INR35 crores, right?

Yes.

And, sir, okay, that's great, sir. And, secondly, on the data center side, where we are obviously, you know, working on first approvals and then will be ramping up. So, exactly what will be doing and firstly, and secondly, sir, what's the current size of the order we are working on as far as data centers are concerned?

See, data centers, order is about INR45 crores, which we have to exec ute, which we have to do it before March of this year. Right now, the way we're doing the first artic le right now, that's initial first article, which are couple of 2-3 assemblies, and then we go into the major first set of

order, which is about INR45 crores, which we have to execute by March o f this year, or February-March of this year, that's last quarter of this financial year. And the way we are setting up the whole plan is that they have up to eight such major infrastructure requirements, eight sets, year- on-year basis. So, that's where we stand. So, the focus is basically to ensure that we have a dedicated facility for that moving forward to execute that eight sets requirement each year onwards.

And, sir, it's for export, right? It's not for domestic consumption?

No, all this is for export.

All this is for export. Thanks, thanks a lot, sir. Thank you.

Thank you. We have the next question from the line of Viraj Parekh from Carnelian Asset Management. Please go ahead.

Thank you so much for the opportunity, sir. My question, firstly, is on the nuclear segment of ours. You mentioned in the earlier questions that -- and also on your PPT that there are four projects that Mahi Banswara where we'll be bidding. Is it possible for yo u to address the TAM and the kind of opportunity we can get in terms of revenue from these four projects which we'll be bidding for over the next 3, 4, 5 years as and when they open?

See, basically, today's situation is the tenders have already been flo ated for these four projects, four 700-megawatt reactors. And once they are allotted to the contr actor who is getting it, then MTAR has an opportunity of much more than what we received from Kaiga 5 & 6, because Kaiga 5 & 6 is only two reactors, these are four reactors. And the timeline , I cannot really say, probably it's a process by itself, right? They finalize the tenders and then, so it's a 1-year process, I guess. So, we're already having our plate full in terms of orders, so probably these orders might come in in the next financial year.

Okay. And, sir, the other question is, you have a specific slide on role in India's PFBR program and the company's also contributed for this program. So, can you just help us understand that what can be the opportunity size here for us?

See, the PFBR program was a very long program for us, which we ha ve actually contributed massively for that in terms of the core of the reactors in various major assem blies, which we have done exclusively for IGCAR and Bhavini projects, that's PFBR.(41:23) So, now, since it's achieved the criticality, now, they're looking at setting up -- I think what we've heard is they're going to set up another couple of more reactors, which they've started se nding the details to us. So, the opportunity is very big in that. So, let's see, as and whe n we have more information on that, we'll update all of you on that. But there is a great opportun ity coming forward for that, since they've achieved the criticality right now.

No, this is directly with the government. For PFBR, it's directly with the gov ernment.

So, if you have to, like, understand the pace of the nuclear or the PFBR program, either of them scaling up faster, we would, not in terms of revenue, but in terms of the timelines of things happening faster, PFBR would come ahead of nuclear?

I'm not too sure about that. See, PFBR will definitely come forward because they've achieved criticality and it's a great achievement by the Government of India t o do that. We have contributed a lot for that. It's kind of part of our nuclear cycle to use th e thorium resources that we have. All this is for civil generation, power requirements, right? So, obviously, the next step is taking right now in terms of moving forward with the next, so let's see how soon they come up with that.

Understood. And, sir, this is the last question. I think the previous partic ipant asked upon it, the products and other sectors where we are supplying certain components which are import substitutes and we also have certain export orders here. Is it possible to elaborate if certain end usage and the products what we are making which are critical and a lso the end usage of these industries, it mainly comes from the point of view of understanding the sustainability of this vertical for our business, given that it's scaled up so significantly in Q1?

Yeah, so the sustainability, it's going to sustain and even do bette r moving forward. So, it's a combination of aerospace, defense, clean energy, it's a combination of all those products that we have developed over the years, and it's going to sustain and do better, actually, quarter-on-quarter basis. That's what we are looking at there.

So, like in aerospace, once we get our first articles approved, is there the similar nature of this business that we are getting certain first articles approved and then winning long-term orders?

That's exactly what I have said. See, as the CFO also mentioned earlier, see, basically, what you have seen, we have done a lot of work in the last couple of years i n order to establish the first articles, the infrastructure, getting qualified for aerospace, and getting the right customers, and our quality getting approved very well by all these customers. So, we've already moved into the volume production for majority of the first articles, and some a re in the process. So, it's an ongoing process. So, what you're seeing the numbers right now is an effort of which was done over the last 1.5, 2 years.

Understood. Thank you so much, sir. All the very best.

Thank you.

Thank you. We have the next question from the line of Jenish Karia from Union Asset Management. Please go ahead.

Yeah. Thank you for the opportunity, and congratulations on a very good set of numbers. So, considering the INR5,500 crores of order book that we have currently, and a very strong outlook on all our segments, incrementally, our revenue will also multifold grow in the coming years. The INR500 crores of capex and the incremental working capital requirement, how do we plan

to fund it? Will it be debt-funded, internal accruals-funded, or will we require some external capital to fund it?

No, it'll be a combination of internal funding and debt. Th at's what it is.

Understood, sir. So, the second question is on the US data center side, so considering we have a large customer there, any on-ground news that you're hearing from in teraction with your customers with regards to delay in the incremental capacity or capex which is being spent on the US data centers? Any delays or slippages you expect in the near term or the medium term?

See, all this is unwanted noise. I really want to express this very clearly . You have seen how we have progressed as far as MTAR is concerned and how we are moving fo rward and the kind of orders we are receiving even recently as well. So, things are movi ng in the right direction. Absolutely, there is no issue at all.

Perfect, sir. That's good to hear. Thank you for addressing the qu estions, and all the best for the future.

Yeah.

Thank you. We have the next question from the line of Rohit Na tarajan from Axis Max Life. Please go ahead.

Yeah. Thank you for this opportunity. My first question is more to do at a very, you know, longer-term picture perspective. We are given to understand Bloom Fremont capacity, they're looking to expand it all the way to 5 gigawatt. That could technica lly mean something like 77,000-odd hot boxes as such. Even if you exclude the Taiwanese player, the capacity for you, it will probably be they will be asking you to do more than 60,000 hot boxes per year as such. Will you be in a position to do that? And even some picture beyond that, probably they may h ave to increase their capacity as well, given the kind of requirement you have for behind-the-meter solutions globally for all this data centers as such. What is the outlook over there? I understand there is some NDA and maybe you don't want to disclose many things, but you could probably give some, you k now, qualitative indicators as such.

See, Inaudible :48:25I have already stated earlier in Phase 3 is a m ultifold expansion, which is a multifold expansion of the customer, and I regard I can't get in to the numbers because of the NDA signed, but that's the whole plan, right, to take care of the cu stomer requirements. That's all I can say right now. So, we are on track with everything that what the customer needs.

Got it. Got it. My second question will be more about the content per platform in defense. What exactly are you offering in Tejas, what will be that value per platform for say let's assume for one aircraft, similarly on the content per platform in content per reactor fo r say nuclear? If you

could give us some numbers to understand how big is the opport unity here and how much you can incrementally make an inroad.

See, as I mentioned earlier, in defense for Tejas, we are qualified in to the actuator program, which is about INR140 crores to INR150 crores. It's going to go in further than that. That's not the only area. We are working on very niche areas in defense, which we don't discuss in detail. So, we are working on various projects, including various projects in defense as well. So, we are working on number of projects which are we find there is a lot of value add and the criticality involved in those projects. So, these numbers are going to grow for sure. And, for nuclear, our basket, our wallet share is extremely high in terms of these reactors, given by NPCIL and the Department of Atomic Energy. 50 27 In audible We have a 60% to 70% share of orders for these reactors, isn't it, right? So, we are looking at 4 to 6 reactors coming in, so there is a massive plan by the Government of India also moving forward to really ramp up this nuclear energy program, a nd we keep talking about clean energy, but we are really pushing ourselves to expand our capabilities beyond for the requirements that we're seeing, foreseeing in a huge way in the nuclear p rogram, and MTAR is really working towards that in terms of executing these commitments, which are going to come in a big way over the next 2-3 years.

Understood, sir. Appreciate it. I'll get back in the queue. Thank you . Thank you very much.

Thank you. The next question comes from the line of Piyush Sevaldasani from Sundaram Alternates. Please go ahead.

Sir, hi, sir. Thank you for the opportunity, and congrats for a g reat set of results. Sir, my first question is on the interest cost of INR16 crores. If you could help us with the bifurcation of how much of that is non-fund based limit and given the free up in the working capital, how should we see the interest cost going forward?

On the interest cost, basically, I can -- I don't have the exact break-up of that, but probably CFO or Srilekha can give it a little later to you, but it's a combinati on of everything, and probably it would we're trying to reduce our interest cost also moving forward furth er. So, it would come down moving forward on a quarter-on-quarter basis, I guess. I think CFO would agree to that.

Sure. Sir, just last question on this products and others division, I th ink we were trying to increase our TAM with our largest client where we were trying to get into the enc losures and cable harness. Any other new products which we are trying to expand our opportunity with them?

Yeah, we are definitely doing We're getting qualified for additi onal assemblies as well. So, as and when it is done, we'll intimate accordingly. We're doing that in products division as well as in clean energy. What I want to say is, this is the whole entire focus is th e innovation. We keep working on developing new products on a consistent basis, and you will see the result 6 months 1 year down the line in terms of volumes and all that. That's our f ocus right now. So, that's a continuous process in MTAR. It's not one product.(Inaudible 52:00)

Okay, sure. Thank you, sir. That's it from my side.

Thank you. The next question comes from the line of Vipraw Sriva stava from PhillipCapital . Please go ahead.

Sure, sir. Thanks for allowing me to ask one more question. So, quickly on the product side where we have obviously seen a very rapid run-up in the con text of this quarter's revenue. So, specifically, sir, going ahead, what kind of programs you're wor king on, I mean, what kind of ramp-up you see as far as product is concerned over next couple of years?

See, the product division is going to grow rapidly because we have done a lot of work in terms of aerospace, clean energy, and various other sectors, and you are seeing the result now in this quarter, and you'll see more moving forward as well. As I've said earlie r in my presentation, basically, it's a continuous process for MTAR to develop the prod ucts, to cater to the existing customers and new customers as well, in various sectors. So, it's a combination of different segments that we are working on in the product division, which we have done over the last couple of years, and you're seeing the results right now. And moving forward as well, this segment is going to grow more and more.

Sure, sir, that makes a lot of sense. That's all from my end. Thank you.

Thank you. The next question comes from the line of Pritesh Chhed a from Lucky Investments. Please go ahead.

So, from your backlog, if you could tell us what is the execution cycle of the products backlog and the clean fuel clean energy fuel cell backlog?

See, that's a very good question. So, we have the order where the demand is so high. See, when people are keep asking about, sorry, sorry, I'm sorry.

Your sound is Sorry, your sound is not audible, sorry.

No, I think I'm audible to everyone. I don't know, something Can you hear me now?

: We can hear you, sir.

Sorry to interrupt, sir, there's quite disturbance in your voice.

Yeah, can you hear me now?

Yes, sir.

Okay. See, we have enough order where the demand is so high that we really focused on. The more we execute, the better it is for the customer, so that's what we are doing right now. That's why we're going with the expansion plans, and also focusing on the o perational efficiencies of the existing capacities.

So, the best part of our order book, it's not like an order boo k which has to be executed over 5 years or 10 years, it's all short cycle. Some are within 1 year, some are within 6 months, some are within 2 months, some are within 1 and a half 2 years. So, it is so mething that continuous order book is going to happen. It's not an order book which is spread over that. (In audible:56:27)So, short cycle products, most of them, majority of them, and our focus right now is to execute them as fast as possible.

So, I was asking on the execution cycle for the clean fuel cell order backlog, is that possible to share?

Can you hear me now?

Yes, sir.

Okay. So, basically, the see, what orders you're seeing right now is that we need to execute them over this year and the next year, and the sooner we do, we are all looking at the execution cycle and implementation of the capacities. And these are all short cycle orders. It' s not that we're trying to execute this over the next 3 years, 4 years, it's all very short cycle orders which we need to execute as soon as possible.

Okay. And, sir, in the total gigawatt issuance of your key customer, what will be the indicative market share that we'll have?

No, there's nothing like market share. We right now, see, the d emand is so high right now in terms of the requirements by the customer, so we hold a majority of the sha re in that, but we can't spell out the exact percentage right now.

Okay. And the last question is on the products business, there is a substantial number this quarter, and on the aerospace and defense business, if I had to ask you 3-4 years down the line, what should be the size of these businesses? So, these businesses have been around INR100-crores size, INR130 crores annual size. If I had to ask you in FY30 based on whatever work efforts that you've put in and the platforms or the projects that you're working on, what kind of business sizes these should be 3-4 years down the line?

I can't say the exact number, but the kind of roadmap we hav e, it might cross INR1,000 crores very comfortably.

Both these combined?

No, I'm talking about the products business.

Individually INR1,000 crores?

No, no, aerospace, probably, you're looking at INR600 crores, INR7 00 crores, and products should cross more than INR1,000 crores.

That's right.

Okay. Okay, sir. Thank you.

Thank you. In the interest of time, that was our last question, and I wou ld now like to hand the conference over to the management for closing remarks. Thank you, and over to you.

Thank you, everyone, for joining us today and spending y our time to join our earnings call for Q1 FY27. I would like to thank all every all the employees of MTAR for the contribution they have done, and even moving forward as well, and I would like to also thank the shareholders for their trust and faith in MTAR, and continue to support the company moving forward as well. Thank you so much.

Thank you. On behalf of MTAR Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.